1) We are frontier with way less developed countries. Africa-Europe frontier.
2)We have good climate all over the year.
3)We got in debt for buying houses. Tens of years of loan debt were given to the government in the form of taxes. E.g, you got 35 year loan and paid right now 16% taxes.
4) The government got used to spending the money, thinking ill will last forever.
5) People stopped paying loans. They had the same money that before, taxes grew because debt grew. Today we have millions of unsold houses.
6) Government spends way more that come in. They don't want to stop spending so they, as an state, go in debt too.
7) Government is in trouble. We are near 20% unemployment rate, gov is constantly trying to lower the official rate making statistical tricks, like not considering unemployed those that don't work but go to a employment class.
Spain's public debt is not so bad compared to it's other neighbors - France, Portugal and Morocco all have almost twice as much. Spain's problem is mainly with the private debt...
Anyway, as you mentioned Eurozone, PIGS countries (Portugal-Ireland-Greece-Spain) are obviously a major burden with their problems.
But what will happen will depend on what actions will be taken. Personally I'm quite pessimistic about Europe.
Property taxes in Spain vary but are typically in the range of 5% to 8% depending on where you buy the property and the ages of the buyer; way less than 16% which is the VAT ('IVA') rate.
Of course, you pay property taxes, but with the money you pay you are paying the VAT other people pay(the person who sells you the house needs to, and all the chain).
Uh, no; that's not how VAT works. If you buy a new property then the promotor, builders, carpinters, painters, architects etc can all claim back any VAT paid for services, supplies or materials. If you are buying second-hand, then the previous owner will have paid property tax, not VAT.
Comments
I live in Spain, like California:
1) We are frontier with way less developed countries. Africa-Europe frontier.
2)We have good climate all over the year.
3)We got in debt for buying houses. Tens of years of loan debt were given to the government in the form of taxes. E.g, you got 35 year loan and paid right now 16% taxes.
4) The government got used to spending the money, thinking ill will last forever.
5) People stopped paying loans. They had the same money that before, taxes grew because debt grew. Today we have millions of unsold houses.
6) Government spends way more that come in. They don't want to stop spending so they, as an state, go in debt too.
7) Government is in trouble. We are near 20% unemployment rate, gov is constantly trying to lower the official rate making statistical tricks, like not considering unemployed those that don't work but go to a employment class.
8)To be continued...
Given that Spain don't really have the ability to print money any more due to being a member of the Euro, what do you think will happen?
Spain's public debt is not so bad compared to it's other neighbors - France, Portugal and Morocco all have almost twice as much. Spain's problem is mainly with the private debt...
Anyway, as you mentioned Eurozone, PIGS countries (Portugal-Ireland-Greece-Spain) are obviously a major burden with their problems.
But what will happen will depend on what actions will be taken. Personally I'm quite pessimistic about Europe.
Here's a detailed analysis of the situation from Roubini Global Economics Monitor http://www.rgemonitor.com/euro-monitor/255424/do_brics_and_g...
Thanks, that was a great article, well worth a read (especially for those inside Europe).
Property taxes in Spain vary but are typically in the range of 5% to 8% depending on where you buy the property and the ages of the buyer; way less than 16% which is the VAT ('IVA') rate.
Of course, you pay property taxes, but with the money you pay you are paying the VAT other people pay(the person who sells you the house needs to, and all the chain).
Uh, no; that's not how VAT works. If you buy a new property then the promotor, builders, carpinters, painters, architects etc can all claim back any VAT paid for services, supplies or materials. If you are buying second-hand, then the previous owner will have paid property tax, not VAT.